On Dec.16 Bitcoin Broke $20,000 mark and it`s not showing any price of stopping. At the time of writing this article it`s trading at around $23,000 mark, gaining more that 20% in the last 2 days. However according to Scott Minerd it might be just the beginning.
Scott Minerd ,who is a founding and managing partner at Guggenheim Investments, believes that Bitcoin might be on it`s way to $400,000. There are several reasons why he believes this price target is realistic. He compares BTC to gold and mentions the fact that it`s a scarce resource and there will only be 21 million BTC ever mined. Here is his direct quote: “Our fundamental work shows that Bitcoin should be worth about $400,000. It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. So you know, Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.”
A lot of financial analysts are being worried about coming inflation. Governments all around the world have been printing money at crazy rates. In addition to incoming inflation Bank and Government-Bond rates are at record lows and will stay there for a while. All of this is pushing more and more institutional investors to alternative investment opportunities and Bitcoin has been recognize as one of the best stores of value lately. Everything it pointing to the fact that this is just the beginning of BTC price rally and 2021 will be another crazy year for BTC.